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Vocational Training Market – India April 2015
Executive Summary
Market
SAMPLE
Vocational training market was valued at INR x1 in 2013 and is slated to grow at x2% till 2019 It is likely to take off over the next few years, owing to strong government participation Government has set a target of preparing 500 mn skilled workers by 2022, and only a meagre 2.5 mn vocational seats are available in the country
Drivers
Drivers & Challenges
Trends Government Participation
Challenges
– Expanding vocational training infrastructure – Increasing private participation in vocational training – Low penetration of vocational training – High demand for skilled personnel – Inefficiencies in formal education system
– Questionable quality of training – Lack of adequate infrastructure
India mulling on Vocational Training Act Vocational training as a preferred mode of Corporate Social Responsibility (CSR) Increasing investments in vocational training Advanced Training Institutes to be set up in India Government Bodies Government Initiatives Associated Bodies Major Players
Competition
Player 1
Player 2
Player 3
Player 4
Player 5
Player 6
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•Macroeconomic Indicators •Introduction •Market Overview •Drivers and Challenges •Trends •Government Participation Government Bodies Government Initiatives Associated Bodies
•Competitive Landscape •Strategic Recommendations •Appendix VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT
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Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14 d1 c1 13 b1 12 a1
c4 b4 a4
c3 b3 a3
d2 c2 b2 a2
11
Q1
Q2 2010-11
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly % 2 1
p
r
s
q
0 -1
-t
-2
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
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Education sector in India has experienced some major changes in recent past
SAMPLE
Education Market in India – Overview
• Education is one of the largest service sectors in India and is poised to become one of the best across the globe • India has more than x3 mn schools and more than x4 higher education institutes • Education sector received a total amount of foreign direct investments inflow of INR x5 between Apr 2000 and Jan 2015 • The Government of India has taken several measures such as opening of IIT’s and IIM’s across new locations as well as allocated educational grants for research scholars in most government institutions • Additionally, online education is set to change the landscape in a major way with several educational organizations using it as a prospective option to reach out to students
Market Size and Growth INR tr y7
y8 y3
y4
y1
y2
2013
2014
2015e
2016e
y5
y6
0 2017e
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2018e
2019e 5
Vocational training market in India is poised for strong growth owing to favourable government support Vocational Training Market in India – Overview
SAMPLE
• Vocational training is a significant element in the country’s education landscape • For it to be effectively playing a role in altering the national context, vocational training needs to be redefined in terms of flexibility, contemporariness, relevance, inclusiveness and creativity • The Indian government is well aware of the need of this initiative and has significantly provided support towards the mentioned cause • Only about x6 mn vocational training seats are available in the country while x7 mn people are said to enter labor market every year • It is expected that by 2020, x8% of total international manpower employed will be Indian and so it is considered the most opportune time to usher in vocational training in the country
Market Size and Growth INR bn z7 z8
z1
z2
2013
2014e
z3
z4
z6 z5
0 2015e
2016e
2017e
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2018e
2019e 6
Drivers & Challenges – Summary
Drivers Expanding vocational training infrastructure
Challenges
Increasing private participation in vocational training
Questionable quality of training
Low penetration of vocational training
Lack of adequate infrastructure
High demand for skilled personnel Inefficiencies in formal education system
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Trends – Summary
Advanced Training Institutes to be set up in India
India mulling on Vocational Training Act
Increasing investments in vocational training
Vocational training as a preferred mode of Corporate Social Responsibility (CSR)
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MHRD has a structure for imparting vocational education at all levels
SAMPLE
Ministry of Human Resource Development (MHRD)
Overview
• Text • Text
Initiatives
• Text • Text
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Various Schemes and Programmes under National Vocational Training (6/11) Schemes for Training (6/7)
SAMPLE
Vocational Rehabilitation Centers (VRC) • • • •
Text Text Text Text
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Industry associations impacting vocational training segment constitutes of p1, p2, p3
SAMPLE
Industry Associations
Association 2
Association 1
• Text
• Text
VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT
Association 3
• Text
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Porter’s Five Forces Analysis
SAMPLE
Threat of New Entrants • Text
Impact Medium
Impact Medium
Bargaining Power of Suppliers • Text
Impact Low
Impact Medium
Competitive Rivalry
Bargaining Power of Buyers • Text
• Text
Impact High Threat of Substitutes • Text
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Competitive Benchmarking (1/5) Public Trading Comparables (2014) Aptech Ltd.
SAMPLE
Everonn Education Ltd.
Jetking Infotrain Ltd.
NIIT Ltd.
Market Capitalization (INR mn)
Share Price (INR)
EV/EBITDA (x)
EV/Revenue (x)
PE Ratio
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Competitive Benchmarking (2/5)
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin
%
Net Margin
m1
m2
0 m3
m4 m5 m6
Player 1
Player 2
Player 3
• Player 1 recorded operating margin of n1%, higher than both Player 2 and Player 3 which recorded operating margin of n2% and n3% respectively • Player 1 recorded a net margin of n4%, while Player 2 and Player 3 recorded a net margin of n5% and n6% respectively
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Public: Player 1 (1/4) Company Information
SAMPLE Offices and Centres – India
Corporate Address
Tel No. Website Year of Incorporation Ticker Symbol
Mumbai
Stock Exchange
Head Office
Products and Services Category
Products/Services
Products & Services
S1, s2
Key People Name
Designation
P1
D1
P2
D2
P3
D3
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Public: Player 1 (2/4)
SAMPLE
Financial Snapshot
Key Ratios
Total Income
Revenue INR mn
Profit INR mn
Net Profit/Loss g2
g4
g1
g3
g8
g6
g7
g5
0
0 2011
2012
Financial Summary
2013
2014
• The company incurred a net profit of INR u1mn in FY 2014 and INR u2 mn in FY 2013 • The company reported total income of INR u3 mn in FY 2014, registering an increase of u4% over FY 2013 • The company earned an operating margin of u5% in FY 2014, an increase of u6 percentage points over FY 2013
• The company reported debt to current ratio of u7 in FY 2014, a decrease of u8% over FY 2013
Key Financial Performance Indicators Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
Value (dd/mm/yyyy)
Particulars
y-o-y change (2014-13)
2014
2013
2012
2011
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Decline
16
SAMPLE
Public: Player 1 (3/4) Key Business Segments p10
Key Geographic Segments
p11
q7
p12
q8 p3
p2
p5 p6 p7
p8
q5
p9
q6
2011
2012
2013
p4
q1
p1
2014
2011
q2
q3
q4
2012
2013
2014
Business Highlights Description
Details
Overview
• Text • Text • Text
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Public: Player 1 – SWOT Analysis (4/4)
SAMPLE
• Text
• Text
S
W
O
T
• Text
• Text
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Private: Player 2 (1/5) Company Information
SAMPLE Offices and Centres – India
Registered Address
Tel No. Kolkata
Website Year of Incorporation
Head Office
Products and Services Category Services
Products/Services S1
Key People Name
Designation
P1
D1
P2
D2
P3
D3
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Private: Player 2 – Shareholding Pattern (2/5)
SAMPLE
Shareholders of the Company Name
S1
Ownership Structure No. of Shares held
s8
s9
N1 s7
S2
N2
S3
N3
S4
N4
S5
N5
Total
s6
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Private: Player 2 (3/5)
SAMPLE
Financial Snapshot
Key Ratios
Total Income
Profit / Loss
INR mn
Particulars
INR mn
y1
y2
y3
y4
y5
y6
y7 y8
0
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios 2010
2011
2012
2013
Financial Summary
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
• Company incurred a net loss of INR x1 mn in FY 2013, as compared to net loss of INR x2 mn in FY 2012
Liquidity Ratios
• It reported total income of INR x3 mn in FY 2013, registering a decrease of x4% over FY 2012
Leverage Ratios
• Earned an operating margin of x5% in FY 2013, a decrease of x5 percentage points over FY 2012 • The company reported a debt to equity ratio of x6 in FY 2013, a decrease of x7% over FY 2012
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Decline
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Private: Player 2 (4/5) Business Highlights Description
Overview
SAMPLE News
• Text • Text
Financials
• Text
Recent Update
• Text • Text
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Private: Player 2 – SWOT Analysis (5/5)
SAMPLE
• Text
• Text
S
W
O
T
• Text
• Text
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